FCO Performance and Finances

Letter to the Chair of the Committee from Simon Fraser CMG, Permanent

Under Secretary of State, Foreign and Commonwealth Office

FM Outsourcing Contract Asia Pacific and India

I am writing in confidence to let you know that yesterday we signed a contract with ISS to provide Facilities Management services to HMG’s diplomatic missions in Asia Pacific & India. [ISS is the largest global provider of FM services.]

This is the Foreign and Commonwealth Office’s second regional Facilities Management contract. The first, signed in September 2008, covers the FCO’s estate in the UK and our diplomatic missions in 11 countries in Europe.

The Asia Pacific and India contract will be for a period of seven years, with the option of up to three further years, and is estimated to deliver benefits of up to £14m over the seven year life of the contract. Additionally, it will deliver significant benefits in terms of standardisation of services across the region, professional management of FM activities, improvements in estates compliance and a significant reduction in the FCO’s local staff headcount. It also provides for other Government Departments based in the region to source services under the contract.

I will be happy to provide further details of the contract in the next FCO Quarterly Letter if that would be helpful.

4 November 2010